Norwich Union has reduced premiums across its protection range following clarification on the taxation of life companies from HM Revenue & Customs.
They have received confirmation that they could treat accelerated critical illness business as a life product, where previously it had been treated as a health product.
Norwich Union has passed on the savings from this to its customers through reduced premiums for products with accelerated critical illness elements. The change means that premiums are reduced by an average of 0.4%. Mortgage life assurance premiums without critical illness will fall by an average of 1.4%, and mortgage life insurance with critical illness will fall by around 2%.
Our view
If they are having to pay less tax then it is commendable to pass on those savings.